Pound jumps against the euro and dollar as Boris Johnson reveals Cabinet reshuffle – The Sun

THE value of the pound has jumped against both the dollar and the euro today following the Prime Minister's cabinet reshuffle.

Sterling rose from 1.1921 against the euro at the opening of the market today to 1.2007 at the time of writing at 1.30pm.

Meanwhile, the dollar has increased from 1.2955 first thing this morning to 1.3039 now.

This isn't a huge jump but does mean your £1 will get you slightly more for your money in the US and Europe.

According to foreign exchange firm Caxton, this is a one-week high for the pound against the dollar, and the highest the pound has been against the euro since December 2019.

The movement follows a cabinet reshuffle by Boris Johnson that's seen chancellor Sajid Javid quit because he refused to replace his advisors with those of No. 10's.

He was quickly replaced by Rishi Sunak – an up and coming member of the Treasury.

Meanwhile Northern Ireland secretary Julian Smith, business secretary Andrea Leadsom, housing minister Esther McVey, environment secretary Theresa Villiers, and attorney-general Geoffrey Cox have all been fired.

As have transport minister Nusrat Ghani, Chris Skidmore from education, and George Freeman out of transport.

But the Prime Minister has promoted a string of women to junior roles.

Michael Brown, senior market analyst at Caxton said: "The surprising resignation of Sajid Javid as Chancellor, and his replacement by Rishi Sunak, implies that Number 10 will now exert greater influence over the Treasury.

"This has led markets to believe that more expansionary fiscal policies – including increased infrastructure spending – are likely to be delivered in next month’s budget.

"Sterling has strengthened accordingly, rallying above $1.30 to a one-week high against the dollar, and breaking through the key €1.20 mark."

But despite Sterling's boost, it's still a long way off its June 2016 pre-referendum levels.

Back then, the value of the pound against the euro was 1.2719, while it stood at 1.588 against the dollar.

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The pound also strengthened against the dollar and the euro when Britain finally exited the European Union on January 31, 2020.

It also rose back in December 2019 when MPs headed back to parliament following Mr Johnson's general election win.

But no-one can predict exactly how it will fluctuate again in future in these uncertain political times.

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